SHREE SHANTINATHJI JAIN SHWETAMBAR MURTIPUJAK TRUST,BANGALORE vs. THE COMMISSIONER OF INCOME TAX(EXEMPTIONS), BANGALORE

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ITA 1137/BANG/2019Status: DisposedITAT Bangalore08 November 2019AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order, stating that in the interest of natural justice, the assessee should be given another opportunity. The CIT(E) was directed to process the application afresh.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application for non-compliance after the assessee failed to provide requested details by the stipulated deadline.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application without providing a further opportunity, given the assessee's inability to amend its trust deed in time.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C’’ BENCH : BANGALORE

Before: SHRI B.R BASKARAN & SHRI PAVAN KUMAR GADALE

For Appellant: Shri H.N Khincha, C.A
For Respondent: Shri Pradeep Kumar, CIT (DR)
Hearing: 06.11.2019

O R D E R Per B.R. Baskaran, Accountant Member

The appeal filed by the assessee is directed against the order dated 24/4/2019 passed by ld CIT(E) rejecting the application filed by the assessee seeking registration u/s 12AA of the Act.

2.

We heard the parties and perused the record. The assessee has filed application in prescribed Form No.10A on 30/10/2018 before the ld CIT(E), Bengaluru seeking registration u/s 12AA of the Act. While examining the application of the assessee, the ld CIT(E) has called for certain details. Since the assessee did not respond to the notice issued by the ld CIT(E), the ld CIT(E) rejected the application of the assessee for non compliance.

3.

The ld AR submitted that the ld CIT(E) issued letter dated 27/3/2019 calling for various details and has given time up to 10/4/2019 only for furnishing them. One of the requirements of the letter is amendment of trust deed of the assessee by incorporating/modifying certain clauses. The assessee could carry out amendments to the trust deed only on 24/4/2019 and hence the assessee could not respond to the letter issued by ld CIT(E) before 10/4/2019. However the ld CIT(E), without providing for further opportunity, has rejected the application filed by the assessee. Accordingly he prayed that the order passed by ld CIT(E) may be set aside and the assessee may be provided with one more opportunity to furnish all the details.

4.

We heard ld DR and perused the record. Having regard to the submissions made by ld AR, in the interest of natural justice, we agree with the prayer made by ld AR. Accordingly we set aside the order passed by ld CIT(E) and direct him to process the application of the assessee afresh in accordance with the law. The assessee is also directed to cooperate with the ld CIT(E) by furnishing all the details that may be called for by him.

5.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Open Court on 8th November, 2019.

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